Are you ready to start your business? Do you have your vendors, marketing, financing and accounting system in order? Whether you fund your startup yourself or you need financing, you should start learning how to build your business credit. Your credit score will determine how much and what type of financing you can get now and in the future. These are tips that can help you raise your business score.

Get Fully Established

First, choose a business name and formal business structure. Your business can become a sole proprietorship, partnership, LLC or corporation. File paperwork with your secretary of state to create a legal entity. Once you receive your paperwork from the secretary of state, file for an employer identification number with the IRS.

Then, get a business email and phone number. Consider creating a website. Also, secure a post office box if you don’t have a physical business location yet. You may also consider getting a Dun & Bradstreet D-U-N-S® number, which identifies your business’s credit profile.

Apply for Additional Credit and Financing

As your business credit score increases, you should consider applying for additional credit. You may choose lines of credit that you can use when you need additional funding for expansions or other expenses, or you can get small loans that you can pay back quickly.

Also, work with your vendors. Ask them to submit your payment information to the credit bureaus. Continue pursuing these trade credit accounts, where your vendors provide raw materials or products on credit with specific repayment terms. Then, submit your payments and companies to Dun & Bradstreet as Trade References. This company will then verify, accept and weigh the vendor and payments and adjust your PAYDEX® score.

Separate Your Business and Personal Finances

As soon as you can, open a business savings and checking account. Get a debit card associated with your checking. Then, open business credit cards. Don’t overdo it, one or two cards should be fine at first. Pay all your business expenses with these business accounts.

Watch your debt ratio. Keep your charges at less than 30% of the business’s total available credit. Also, pay off the cards every month if you can.

Develop business accounts with your vendors. Do not pay them with your personal accounts. Negotiate terms for credit and pay these bills early or on time. Every time you make a payment, your business credit grows.

It will take patience, but over time, you can build a strong business credit score, which you can use to gain additional financing with better terms.